By Liam Moloney
Snam SpA (SRG.MI), Italy's biggest natural gas grid by lines,
Wednesday presented its 2013-2016 growth plan in which it predicts
a flat 2013 dividend, while adding it will maintain an attractive
dividend in the medium-long term to woo investors.
Snam also said it upped its planned investments over the next
four years as part of its plans to expand abroad.
In a statement, Snam said its planned investments would be 6.9
billion euros ($8.97 billion) 3% higher than the EUR6.7 billion it
had penciled in to spend in the 2012-2015 period. The Milan-based
company said it plans to spend EUR1.3 billion this year.
Snam said it expects a flat dividend this year compared with a
EUR0.25-a-share payout for 2012.
"We are confirming a robust investment plan focused on
strengthening Italian gas infrastructure while at the same time
developing operations internationally," said Chief Executive Carlo
Malacarne in the statement.
Snam's biggest shareholder is state-controlled lender Cassa
Depositi e Prestiti SpA after the Italian government forced Eni SpA
(E) to cede its hold as part of a process to open up the sector to
competition and lower energy prices.
Snam is increasingly looking at growth opportunities in Europe
as it teams up with Belgium's Fluxys SA (FLUX.BT).
Last month, Total SA (TOT) picked a consortium in which Snam is
the biggest investor with a 45% stake which also includes
Electricite de France SA (EDF.FR) and the Government of Singapore
Investment Corp., to enter exclusive talks to sell its gas
transport and storage unit TIGF.
Snam has slated a presentation to detail the plan in London at
1400 GMT, Wednesday.
Tuesday, shares closed at EUR3.58, giving the company a market
capitalization of about EUR12.15 billion and placing it as the
eighth biggest company on Italy's FTSE Mib Index.
Write to Liam Moloney at liam.moloney@dowjones.com